More than 12 million pensioners in the UK will see an increase in their State Pension of up to £575 per year, according to the Pensions Minister, Torsten Bell. This boost is part of the government’s ongoing efforts to support individuals over the State Pension age as they navigate rising living costs.
The Department for Work and Pensions (DWP) outlined various forms of financial assistance available to help pensioners maintain their financial security. Bell made these remarks in response to a query from Conservative MP Sir Andrew Mitchell, who sought clarification on the support provided to residents of his Sutton Coldfield constituency facing economic challenges.
Bell reaffirmed the government’s commitment to ensuring that the State Pension remains the “foundation of income in retirement.” He noted that the Autumn Budget 2025 promised a 4.8 percent increase in both the Basic and New State Pension, effective from April 2026. This adjustment will translate to an increased annual income for pensioners, with the full new State Pension recipients seeing an additional £360.
Increased Financial Assistance for Pensioners
The upcoming changes also extend to the Pension Credit Standard Minimum Guarantee, which will rise from £227.10 to £238 per week for single pensioners. Couples will see their weekly income increase from £346.60 to £363.25. Bell emphasized that these increases aim to protect the income of the poorest pensioners, ensuring they do not face undue hardship.
In addition to these measures, pensioners in England and Wales receiving Pension Credit will automatically qualify for the Cold Weather Payment, while those in Scotland will benefit from the annual Winter Heating Payment, valued at £59.75, expected to be distributed by mid-February.
Bell further highlighted the Winter Fuel Payment, which will assist over three-quarters of pensioners during this parliamentary term. This initiative aims to target financial support towards those on lower and middle incomes, maintaining fairness for both pensioners and taxpayers.
Long-Term Energy Support Initiatives
The government is also responding to ongoing energy cost pressures by reducing average household energy bills by approximately £150 across Great Britain starting in April 2026. The removal of the Energy Company Obligation is expected to lessen the financial burden on households.
Additionally, the Warm Home Discount will expand to include around 2.7 million more households, bringing the total number of low-income households receiving £150 support for energy bills to around 6 million. Looking ahead, the government plans to consider options for future bill support as the Warm Home Discount regulations expire in 2026.
As part of its commitment to combating fuel poverty, the UK Government has allocated £1.5 billion in new funding aimed at enhancing energy efficiency in homes through the Warm Homes Plan. This initiative seeks to invest in insulation and low-carbon heating, thereby upgrading millions of homes throughout this parliamentary term.
Pensioners can check their eligibility for Pension Credit using the online calculator available on GOV.UK or they may contact the Pension Credit helpline at 0800 99 1234 for assistance. The helpline operates Monday to Friday from 08:00 to 18:00. Further guidance is also available through organizations such as Independent Age, Income Max, Citizens Advice, and Age UK.
This comprehensive support framework reflects the government’s commitment to enhancing the financial well-being of pensioners amidst ongoing economic challenges.
